Finding the right property development finance can be exhausting. There are so many options and decisions to make, from what type of security you need for your property purchase or mortgage application to which lender will offer financing at a reasonable rate with no hidden fees.
Professional Lending Solutions understands that your needs as a developer can be quite different, depending on your experience level and what kind of property you are looking to build. But whatever your needs, you will need finance to continue growing your business. Whether you’re considering a commercial or industrial development, a residential property development, or even subdividing land, Our Professional lending specialists can help you fund it.
Property development finance is a loan that can help you fund the construction of more than one property on one title. Most banks and lenders split property development into two parts, and both can have very different approval processes, fees and charges, interest rates, and risk assessments.
They are:
- Residential: Most banks and lenders define residential property development as smaller-scale development, often up to four different units. This kind of mortgage can have standard fees and charges and is the less risky of the two.
- Commercial: If your property development is greater than four or five residential units, banks and lenders are likely to characterize it as commercial property development. This can be anything from a skyscraper to a series of commercial properties. These kinds of mortgage applications can be more complex, and often attract a higher interest rate to protect the bank or lender against risk.
How much can I borrow to develop a property?
We Professional Lending Solutions prides itself on being different from banks and other lenders. We are focused on tailoring outcomes that are to the exact needs of every client, and we do it by actively listening to what they want, not what we think their needs may be. That’s because we want to help you find a suitable loan and mortgage finance product and help you by providing ongoing support over the life of the loan.
When it comes to property development finance or development funding, our specialist technicians can ensure a seamless process for our clients, as we provide them with all the tools, knowledge, and experience we have. When it comes to property development, borrowing money can be a similar process to a regular residential mortgage, especially if your proposed development fits in with the residential definition above.
However, banks and lenders will focus on the higher risks associated with lending money for this purpose, and as such there can be a range of extra things to consider. The first is LVR or Loan-to-Value Ratio.
For more details on property development finance, contact us. We can help you get started today with a free consultation over the phone or in-person at our office
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Gold Coast – Shop 3D 47 Ashmore Road, Bundall 4217, QLD Australia.
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Depending on your credit scores, applying for a mortgage without your spouse or partner could save you a ton of money.If you have an excellent credit score but your partner’s score is much lower, the lender will likely charge you a higher interest rate, based on your partner’s score.
Not all lenders follow this rule (when I applied for a mortgage with my husband, they took the average of our scores), but it’s something to watch out for.
In Australia, credit card companies, credit reporting agencies, banks and lenders use various methods to calculate a credit score for a person that is used to determine how financially responsible they are.According to mortgage broker Mint Equity: ” They have the ability to affect a lenders decision on whether to approve or decline a loan.
But, as lenders seek ways to reduce their risk, credit scores now have the potential to affect interest rates too.”There is also the risk of getting your loan application rejected if you apply with a partner who has a bad credit score.Of course, you might need your partner’s income to qualify for the mortgage amount you want as well.
Going for a loan as a single applicant may lower your borrowing power significantly.Get more financial tips from Professional Lending Solutions
